Cloud communication provider RingCentral (RNG) experienced a significant surge after reporting its fourth-quarter results, with its stock gaining 34.4% intraday on Feb. 20. The company has gained considerable momentum due to its artificial intelligence (AI) offerings. This year, RingCentral’s stock is up nearly 40% after a slump last year. The company reported that its annual recurring revenue (ARR) from customers using the tools doubled annually to nearly 10%. RingCentral also recently integrated ChatGP ...

Core Insights - RingCentral's stock surged over 34% following a strong fourth-quarter financial report, with revenue increasing by 5% year over year to $644 million [1] Financial Performance - The company's adjusted earnings per share rose by 20% to $1.18, exceeding Wall Street's expectations of $1.13 [4] - Operating income improved significantly to $42 million from $16 million in the prior-year quarter, with operating margin increasing to 6.6% from 2.5% [3] AI Investments - RingCentral's investments in artificial intelligence are yielding positive results, with the number of customers using its AI Receptionist increasing by 44% sequentially to over 8,000 [2] - AI-powered products now contribute over $100 million in annual recurring revenue (ARR), with ARR from customers using these products more than doubling year over year, approaching 10% of overall ARR [2][3] Future Outlook - For 2026, RingCentral anticipates revenue growth of 4% to 5% and free cash flow to rise by 11% to approximately $590 million [5] - The company plans to initiate a quarterly cash dividend of $0.075 per share, marking its first-ever dividend [5]

Core Insights - Bandwidth Inc. reported modest fourth-quarter 2025 results, with revenues slightly exceeding estimates and adjusted earnings meeting expectations [1][3] Revenue Performance - Quarterly revenues decreased to $207.7 million from $210 million in the prior-year quarter, primarily due to lower messaging surcharges and the absence of political campaign revenues, although it beat the Zacks Consensus Estimate of $207.2 million [5][9] - For 2025, total revenues increased to $753.8 million from $748.5 million in 2024 [5] Income and Earnings - On a GAAP basis, the net loss for the quarter was $3 million or a loss of 10 cents per share, compared to a net loss of $1.8 million or a loss of 6 cents per share in the prior-year quarter [2] - Non-GAAP net income for the quarter was $11.5 million or 35 cents per share, slightly down from $11.6 million or 37 cents per share in the prior-year quarter, aligning with the Zacks Consensus Estimate [3] Gross Profit and Margins - Non-GAAP gross profit for the quarter was $86.3 million with a margin of 57%, compared to $83.4 million and a margin of 58% in the year-ago quarter [7] - For 2025, non-GAAP gross profit rose to $326 million from $307.9 million in 2024, with respective margins of 58% and 57% [7] Cash Flow and Liquidity - In the fourth quarter, cash generated from operations was $38.6 million, up from $36.5 million in the year-earlier quarter [8] - For 2025, cash from operating activities totaled $89.5 million compared to $83.9 million in 2024 [8] Future Outlook - For the first quarter of 2026, Bandwidth expects revenues between $200 million and $203 million, with adjusted EBITDA forecasted in the range of $21 million to $24 million [10] - For 2026, the company anticipates revenues between $864 million and $884 million, indicating approximately 16% year-over-year growth, and adjusted EBITDA expected to be between $117 million and $123 million [11]

Financial Data and Key Metrics Changes - Total revenue for 2025 grew nearly 5% to $2.52 billion, with subscription revenue increasing just over 5.5% to $2.43 billion [5][27] - Record free cash flow of more than $500 million was achieved, up 32% versus 2024, translating to over $5.80 of free cash flow per share [5][24] - GAAP operating margin reached nearly 5% in 2025, with expectations to double in 2026 and target approximately 20% in the next 3-4 years [7][30] - Non-GAAP operating margin improved to 22.5%, with a significant increase in free cash flow per share by 36% to $5.81 [26][28] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 was $622 million, up 5.5% year-over-year, while total revenue was $644 million, up 4.8% [25] - The number of customers utilizing at least one AI product has more than doubled year-over-year, now approaching 10% of overall ARR [11][25] - AIR, the AI receptionist, saw customer count reach 8,300, up 44% sequentially, indicating strong demand [15] - The AI product suite, including AIR, AVA, and ACE, is driving higher usage and retention among customers [14][19] Market Data and Key Metrics Changes - Demand remains strong across all customer segments, with small business and global service provider segments growing in double digits [45] - The enterprise segment is experiencing more pricing pressure compared to SMB, but overall performance remains robust [45] - RCAI-utilizing customers are showing significantly better average revenue per user (ARPU) and net retention rates exceeding 100% [11][25] Company Strategy and Development Direction - The company is focused on transforming into a leading agentic voice AI platform, leveraging its cloud-native communications infrastructure [9][12] - A commitment to invest over $250 million annually in innovation, primarily directed towards AI-led products [29] - The introduction of a quarterly dividend of $0.075 per share reflects confidence in future cash flows and business growth [7][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026 and beyond, highlighting the strong position in a growing market and the positive impact of AI on performance [23][29] - The company aims to reduce stock-based compensation (SBC) to 3%-4% of revenue over the next 3-4 years, enhancing profitability [6][30] - The outlook includes expectations for continued revenue growth and improved operating margins, with a focus on sustainable long-term value creation [30][32] Other Important Information - The company has reduced debt by more than $275 million, ending the year with a net leverage of 1.7x [28][29] - A new Customer Engagement Bundle (CEB) was introduced, quickly gaining traction with over 1,000 customers [19] - The company plans to report on progress with RCAI-utilizing customers periodically, shifting from cohort-based metrics [25] Q&A Session Summary Question: Capital allocation priorities for 2026 - Management highlighted the focus on investing in business growth, reducing leverage, and returning capital through buybacks and dividends [38][40] Question: Demand environment across customer segments - Demand remains strong across all segments, with small businesses growing in double digits, while enterprise faces pricing pressures [45] Question: Profitability levers for margin expansion - Management discussed strong gross margins, disciplined spending, and operational leverage as key factors driving profitability [50][52] Question: Average contract value and ARPU for AI customers - AI-related customers are showing better retention and higher ARPU, contributing significantly to overall revenue [55][58] Question: Uptake of AI across go-to-market channels - Uptake of AI products is strong across segments, with specific success noted in small businesses due to ease of setup [63][64] Question: Adjustments to the partner program for AI priorities - The partner program is being aligned with AI priorities, focusing on key verticals such as healthcare and financial services [70][71]

Financial Data and Key Metrics Changes - Total revenue for Q4 reached $300 million, representing an 8% year-over-year growth [21] - Subscription revenue grew by 12% year-over-year in Q4, now making up 82% of total revenue, up from 79% a year ago [22] - Adjusted EBITDA margin increased to 26%, with free cash flow more than doubling year-over-year to a margin of 22% [10][24] - For the full year 2025, total revenue was $1.15 billion, growing 10% year-over-year, with subscription revenue growing 13% year-over-year [25] Business Line Data and Key Metrics Changes - Enterprise AI revenue growth accelerated to 50% year-over-year, contributing significantly to subscription revenue [21][22] - Core CCaaS subscription revenue growth accelerated to 8% year-over-year [21] - The number of $1 million-plus ARR customers grew subscription revenue by 24% year-over-year, now making up 59% of subscription revenue [22] Market Data and Key Metrics Changes - Gartner forecasts the traditional CCaaS market to grow at a 9% CAGR and the GenAI customer service market at a 34% CAGR through 2029, leading to a combined annual spend of $48 billion [11] - The enterprise business represented approximately 91% of total revenue on an LTM basis, with LTM enterprise subscription revenue growing 15% year-over-year [23] Company Strategy and Development Direction - The company aims to lead in AI-powered customer experience (CX) by leveraging conversational data and enhancing its end-to-end platform capabilities [11][13] - A strong focus on partnerships, particularly with Google Cloud, to accelerate AI-driven CX solutions [14][15] - The company is positioned to capitalize on the significant opportunity in the evolving CX industry, with a commitment to product innovation and operational excellence [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and highlighted the importance of AI in driving future growth [4][10] - The new CEO emphasized the large opportunity ahead for the company and the importance of a unified CX platform [8][9] - The company expects revenue to return to double-digit growth in the second half of 2026, driven by a strong backlog of bookings [28] Other Important Information - The company completed a $50 million accelerated share repurchase on February 2, buying back approximately 2.6 million shares [29] - The company plans to host an Investor Day in late 2026 to provide additional details on strategic priorities and long-term financial outlook [29] Q&A Session Summary Question: Can you help us understand the breakdown between greenfield and existing customer base for AI revenue? - Management indicated that both new logo attach and penetration into the installed base are growing significantly, but did not quantify the breakdown [32][33] Question: How do you see the transformation within the CX space? - The new CEO expressed optimism about the transformation in the CX space, emphasizing the potential for increased efficiency and new experiences through AI integration [40] Question: What sectors are seeing the highest uptake for new features? - Management noted strong success in healthcare and retail, with customers wanting to evolve their CX strategies to incorporate AI [52][54] Question: What percentage of your enterprise base is adopting AI? - Management stated that it is still early days for full penetration of AI within the customer base, but there is significant interest and ongoing adoption [58][59] Question: How do you think about the risk of LLM native platforms bypassing traditional CCaaS? - Management highlighted the importance of data and orchestration capabilities as competitive advantages that are difficult to replicate [62][64]

Core Insights - net2phone has launched an enhanced communications solution specifically designed for the hospitality industry, integrating with popular property management systems (PMS) to improve operational efficiency and guest experience [1][2]. Group 1: Product Features - The solution offers real-time synchronization between hotel PMS and net2phone's cloud PBX, ensuring secure and aligned guest data, room status, billing, and call activity across various hotel departments [3]. - Automated workflows are implemented to enhance guest-centric services, such as wake-up calls and messaging, triggered by guest events like check-in and check-out, allowing staff to focus on personalizing the guest experience [4]. - The system provides accurate call accounting and billing integration, with call detail records flowing seamlessly from the PBX to the PMS, applying flexible billing rules and reducing revenue leakage [5]. Group 2: Operational Efficiency - Centralized control of voice services allows hotel staff to manage various operations, including room status updates and wake-up calls, from a single platform accessible via web and mobile, improving coordination and speed of service [6]. - The integration of net2phone's AI Agent automates front desk operations, enhancing customer service by assisting with tasks such as booking rooms and answering FAQs [7][9]. Group 3: Company Overview - net2phone is recognized as a leader in cloud communications and customer engagement solutions, with a commitment to innovation and growth, and is a subsidiary of IDT Corporation [8].

4Q25 and 2025 Earnings Results February 19, 2026 Legal Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including, without limitation, future financial and business performance for the quarter ending March 31, 2026 and year ending December 31, 2026, the success of our product offerings and our platform, and the value proposition of our products, are forward-looking statements. The words "anticipate," "a ...

Core Insights - Bandwidth Inc. reported strong financial results for Q4 and full year 2025, highlighting record Adjusted EBITDA and free cash flow, with a positive outlook for 2026, projecting approximately 16% revenue growth and 29% Adjusted EBITDA growth [1][2][3] Financial Performance - Q4 2025 revenue was $208 million, slightly down from $210 million in Q4 2024, while full year revenue increased to $754 million from $748 million in 2024 [1][3] - Gross margin for Q4 2025 was 38%, up from 36% in Q4 2024, and for the full year, it was 39%, compared to 37% in 2024 [1][3] - Non-GAAP net income for Q4 2025 was $11 million, down from $12 million in Q4 2024, while full year non-GAAP net income rose to $46 million from $41 million [1][3] - Adjusted EBITDA for Q4 2025 was $25 million, up from $23 million in Q4 2024, and for the full year, it increased to $93 million from $82 million [1][3] Cash Flow and Share Repurchase - Net cash provided by operating activities for Q4 2025 was $39 million, compared to $37 million in Q4 2024, while free cash flow was $31 million, slightly up from $30 million [1][3] - The Board of Directors authorized an $80 million share repurchase program, reflecting confidence in the company's growth strategy and cash flow generation [1][2] Customer Highlights - Bandwidth secured significant contracts with various enterprises, including a top-five global automaker and a major U.S. bank, showcasing the demand for its AI-driven communication solutions [1][2] - The company emphasized the increasing reliance on its Maestro platform and Communications Cloud for AI integration in production environments [1][2] 2026 Financial Outlook - For Q1 2026, Bandwidth expects revenue between $200 million and $203 million, and for the full year, revenue guidance is set between $864 million and $884 million [1][3] - Adjusted EBITDA guidance for Q1 2026 is projected between $21 million and $24 million, with full year guidance between $117 million and $123 million [1][3]

Core Insights - Infobip has been recognized as the number one Established Leader in the Juniper Research RCS for Business 2026 Leaderboard, scoring highest among 17 vendors due to its superior capabilities, enhanced product offerings, and significant market presence [1][2] Group 1: Company Performance - Infobip's extensive mobile operator connections and geographic reach have been highlighted, including being the first provider to launch RCS messaging across all major US telecom carriers [2] - The company supports brands like Virgin Atlantic in delivering interactive messaging that enhances customer engagement [2] Group 2: Market Trends - The adoption of RCS for Business is expected to accelerate, particularly following Apple's support for RCS, with brands looking to leverage the channel for improved customer experiences [3] - Juniper Research anticipates that enterprise adoption of RCS will increase this year, driven by Infobip's capabilities in facilitating RCS sender registration and onboarding [3] Group 3: Company Strategy - Infobip aims to support the growth of RCS for Business through its CPaaS offering, which combines conversational experience orchestration with global messaging infrastructure and AI-enhanced customer engagement [3][4] - The company is focused on becoming an AI-first organization, driving innovation in customer communications and engagement solutions [4]

Core Viewpoint - Twilio Inc. (NYSE: TWLO) is recognized as a significant player in the AI sector, with a strong fourth-quarter performance and a positive outlook for future growth [1][2]. Financial Performance - Twilio reported organic revenue growth of 12% in the fourth quarter, exceeding the 10% guidance at the mid-point [1]. - The voice business experienced high teens growth for the year, while Voice AI revenue surged by 49% year-over-year [2]. Growth Outlook - Initial guidance for 2026 indicates an 8.5% organic revenue growth, which is considered conservative by analysts, anticipating stronger performance due to effective execution [4]. - The company has set a fiscal year 2027 operating income target of $1.23 billion, representing a 17% increase compared to the current fiscal year 2025 guidance [4]. Strategic Positioning - Twilio's optimized Go-To-Market strategy and strong performance from Independent Software Vendor (ISV) partners are key factors supporting the positive outlook [3][4]. - The product portfolio is well-aligned with the increasing enterprise adoption of AI in messaging and voice, further enhancing Twilio's market position [3][4].